Flag question Analyzing Cash Dividends on Preferred and Common Stock Potter Company has outstanding 13,000 shares of $50 par value, 10% preferred stock and 50,000 shares of $5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $270,000 in the second year, and $65,000 in the third year. (a) If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years. Distibution to Preferred Common Stock Year 1 $ 0 $ 0 Year 2 $ 0 $ 0 Year 3 $ 0 $ 0 (b) If the preferred stock is noncumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years. Distibution to Preferred Common Stock 0 $ Year 1 $ Year 2 $ 0 $ 0 $ Year 3 $ 7:22 9/13, OSO Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Zimmer Company owns an executive plane that originally cost $1,792,000. It has recorded straight-line depreciation on the plane for seven full years, calculated assuming a $224,000 expected salvage value at the end of its estimated 10-year useful life. Zimmer disposes of the plane at the end of the seventh year. a. At the disposal date, what is the (1) cumulative depreciation expense and (2) net book value of the plane? (1) Cumulative depreciation expense $ 0 (2) Net book value $ 0 b. How much gain or loss is reported at disposal if the sales price is: Note: Do not use a negative sign with your answers. 1. Sales Price Gain or Loss 0 A cash amount equal to the plane's net book value. $ $399,000 $ 0 $ 0 $980,000 2. 3. Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $15. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units. RS Beginning inventory 1.000 Purchase #1 Purchase 2 Purchase #3 Units Unit Cost 515 5 15.000 1.800 25.200 800 76 12.800 1,200 T9 22 800 -53 (a) Assume that then uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending Inventory balance. Use the financial statement effects template to record cost of goods sold for the period. Ending inventory balance $ 0 Cost of goods sold $0 Use negative signs with answers, when appropriate. Balance Sheet NH Transaction Record FIFO cost of goods sold Cash Asset O Noncash Assets 0 Contributed Capital 0 Liabilities 0 Earne Capital 0 RI 0 0 O N. (b) Assume that Chen uses the last-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance Ending inventory balance $ 0 Cost of goods sold $0 (C) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance (Hint: Round average cost per unit two decimal places prior to calculating the Ending inventory balance. Calculate the cost of Goods sold (CGS) as: (CGS-Cost of goods available for sale - Ending inventory balance.) Ending inventory balance $ 0 Cost of goods sold SO